Do’s and Don’ts of Redundancies in the UK

​This past summer, rail firms in England and Wales decided to install ticket purchasing machines and reduce the number of staff at rail stations over the next three years as part of efforts to modernize the rail system. While notices for the reduction in force—known as a redundancy in the U.K.—haven’t been issued, the specter of potential job losses hangs over the announcement, and the rail firms, as well as other employers throughout the U.K., should keep in mind the proper ways to handle redundancy situations. 

What Is a Redundancy?

The statutory definition of “redundancy” covers three main situations: the closure of an entire business, the closure of a particular workplace, and a reduction in the workforce. The most common type is the third—which also spurs the most disputes and complications.

“The key claim that an employee is likely to have or is likely to want to pursue in a redundancy situation if the employer gets it wrong is a claim for unfair dismissal,” said Claire Dawson, an attorney with BDBF Employment Law in London. In the U.K., if an employee has two years of service with the company, that employee has the right to not be unfairly dismissed. Redundancy is potentially a fair reason for dismissal, but it has to be handled correctly.

In an unfair dismissal case, the burden of proof is on the employer to show it has a potentially fair reason for dismissal, such as redundancy, Dawson said.

Follow Proper Procedures

Certain procedures must be followed in a…